Mobility and Earnings in Ethiopia's Urban Labor Markets: 1994-2004

An analysis of panel data on individuals in a random selection of urban households in Ethiopia reveals large, sustained, and unexplained earnings gaps between public and private, and formal and informal sectors over the period 1994-2004. The authors have no formal evidence whether these gaps reflect segmentation of the labor market along either of these divides. In other words, they cannot show whether they are at least in part due to impediments to entry in the higher wage sector. But they do have evidence that, if segmentation explains any part of the observed earnings gaps, then it could only have weakened over the survey decade. The authors find, first, that the rate of mobility increased between the two pairs of sectors. Sample transition rates grew across survey waves, while state dependence in sector choice decreased. Second, the sensitivity of sector choice to earnings gaps increased over the same period. In particular, the role of comparative earnings in selection into the informal sector was evident throughout the survey decade and increased in magnitude over the second half of the period.

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Bibliographic Details
Main Authors: Bigsten, Arne, Mengistae, Taye, Shimeles, Abebe
Language:English
Published: World Bank, Washington, DC 2007-03
Subjects:AGE GROUP, AGE GROUPS, BARRIERS TO ENTRY, DOMESTIC WORKERS, EMPLOYEE, EMPLOYERS, EMPLOYMENT, EMPLOYMENT STATUS, ENTRY BARRIERS, EXOGENOUS VARIABLES, FORMAL SECTOR WAGE, FORMAL SECTOR WORKERS, HUMAN CAPITAL, INFORMAL EMPLOYMENT, INFORMAL SECTOR, INFORMAL SECTOR WORKER, INFORMAL SECTOR WORKERS, JOB LOSS, JOB LOSSES, JOB SEARCH, JOBS, LABOR FORCE, LABOR MARKET, LABOR MARKET INDICATORS, LABOR MARKET SEGMENTATION, LABOR MARKETS, LABOR MOBILITY, LABOR REGULATION, LABORERS, MARKET STRUCTURE, MARKET STUDIES, OCCUPATION, OPEN UNEMPLOYMENT, PRICE RATIONING, PRIVATE COMPANIES, PRIVATE COMPANY, PRIVATE FIRM, PRIVATE FIRMS, PRIVATE SECTOR, PRIVATE SECTOR EMPLOYEES, PRIVATE SECTOR JOB, PRIVATE SECTOR JOBS, PRIVATE SECTOR WAGE, PRIVATE SECTOR WORKER, PRIVATE SECTOR WORKERS, PRIVATE SECTORS, PUBLIC SECTOR EMPLOYEES, PUBLIC SECTOR EMPLOYMENT, PUBLIC SECTOR JOB, PUBLIC SECTOR JOBS, PUBLIC SECTOR WORKERS, SALES, SELF EMPLOYED, SELF EMPLOYMENT, SELFEMPLOYMENT, SKILLED WORKERS, SMALL BUSINESSES, UNEMPLOYED, UNEMPLOYMENT, UNEMPLOYMENT RATE, WAGE DIFFERENTIALS, WAGE EMPLOYMENT, WAGE PREMIUMS, WAGE SECTOR, WORK IN PROGRESS, WORKER, WORKERS, WORKING, WORKING MOTHERS,
Online Access:http://documents.worldbank.org/curated/en/2007/03/7459297/mobility-earnings-ethiopias-urban-labor-markets-1994-2004
https://hdl.handle.net/10986/7237
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